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Czech 10Y Yield Flat Ahead of CPI Inflation Next Week

CZECHIA
  • Yesterday, economic data showed that Czech retail sales rose slightly more than expected in May, up 16.5% YoY (vs. 15.7% exo.) and down from revised 21.6% the previous month.
  • Next week, investors will closely watch June CPI print (coming out on July 13), which is expected to decelerate to 2.7% (from 2.9%).
  • Next CNB meeting will take place on August 5, and policymaker are very likely to raise the benchmark rate by another 25bps to 0.75%.
  • USDCZK has been retracing lower in the past few days, currently testing its 200DMA at 21.74; next support to watch on the downside stands at 21.64, followed by 21.48 (100DMA). On the topside, first resistance stands at 21.92, followed by 22.
  • Czech 10Y yield ticks slightly lower this morning and is currently flirting with its 50DMA (1.71%); ST resistance to watch on the topside stands at 1.77% (100DMA). On the downside, key support to watch stands at 1.60%.

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